What is the expected timeframe for full capital return?
Question for searcher LPs/investors: what is the expected timeframe for full capital return (1x DPI)?
Is there any data out there on this?
Any insights are appreciated. TIA.
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by a searcher
from University of Guelph
in Toronto, ON, Canada
in Toronto, ON, Canada
2yrs ago
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by an investor
2yrs ago
in Piscataway, NJ 08854, USA
in Piscataway, NJ 08854, USA
Agree that Search Fund investing is 7-9 year Commitment for full liquidity. The timeframe for return of initial capital is much more variable depending on the type of business acquired and how the cash flows from the acquisition are intended to be used (distributions vs re-invest in growth initiatives, etc.)
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by a searcher
2yrs ago
from Carnegie Mellon University in San Jose, CA, USA
from Carnegie Mellon University in San Jose, CA, USA
The usual is 7 years for self-funded investments. However, I have seen some proposals for 5 years. If the business is doing healthy and growing investors would not mind a longer timeframe, otherwise, it's better for both investor and searcher to return quickly. However, for a business with consistent growth, the initial capital is paid back in 3-5 years.
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